White Paper

Software-Defined Storage — Opportunities for the Enterprise

Sponsored by: IBM
Ashish Nadkarni
January 2018

IDC OPINION

IDC believes that software-defined storage (SDS) continues to transform IT deployment and
consumption of storage resources. For enterprises, SDS is really an on-ramp to deploying a hybrid
cloud — one that allows a metered on-demand consumption of private and public cloud resources.
Deploying SDS therefore is not a question of "if" but a question of "when." IDC's August 2015
Software-Defined Infrastructure Survey found that 75% of enterprises have deployed or are
considering deploying some form of SDS in their environment. For such enterprises, the question of
"why" is adequately clarified. In fact, IDC found that 61% of enterprises that deployed SDS have
realized tangible benefits such as reduction in capex/opex costs, ease of management, reduction in
provisioning time, and peace of mind knowing that they are no longer locked into a single vendor
solution. IDC believes that SDS is compelling enterprises to switch from a pattern of selecting systems
based on their capacity, performance, reliability, and cost characteristics to a service-focused
decoupled acquisition model in which hardware and software are acquired independent of each other.
Furthermore, the software in question (i.e., SDS) is not a one-size-fits-all proposition. In fact, for
enterprises and vendors to succeed with SDS, they have to take a use case–driven approach:

▪ Block-based SDS platforms serve as persistent storage for virtual machines, containers, and
physical servers used primarily for structured data sets and applications such as relational and
nonrelational databases.
▪ File-based SDS platforms, including distributed file systems that serve as repositories for
unstructured data, are used primarily for user and application data via standard datacenter-
based POSIX interfaces like NFS and SMB.
▪ Object-based SDS platforms are used for large globally dispersed repositories and data with
rich metadata requirements and are increasingly used for next-generation applications (NGAs)
that access data storage via RESTful APIs like S3 and Swift.
▪ Hyperconverged platforms are used in cases where compute and data layers need to be
adjacent — in use cases such as virtual server and virtual desktop infrastructure.
IBM deserves the spotlight for assembling a full-service SDS portfolio under the Spectrum family of
products. IBM's vision demonstrates that an incumbent storage vendor can be a leader in the nascent
SDS market. There is much work to be done by IBM and others to convince the rest of the market to
embrace SDS.

January 2018, IDC #US43507616

SITUATION OVERVIEW

Enterprises are singularly focused on a digital transformation journey — one that requires a gradual but
consistent transformation in all aspects of how a firm operates. Maintaining a competitive edge is
mandatory and requires internal and external processes that allow the firm to bring new products and
services to market faster, provide an unparalleled customer service experience, and respond to market
trends in an agile manner.

IT infrastructure transformation is a crucial requirement for enterprises to successfully execute on their

digital transformation strategy. For example, it requires enterprises to embrace develop and/or deploy
next-generation applications; embrace newer methodologies such as DevOps; and prepare for hybrid
cloud. The infrastructure for this digital world has to be software defined and in lockstep with these
newer applications and methodologies. In other words, it needs to be agile, scale on demand, and be
operations friendly. Storage is a core component of software-defined infrastructure (SDI) and therefore
deserves the same level of attention as other aspects of SDI, such as compute and networking.

Figures 1–4 (refer to the Appendix section) illustrate the findings from IDC's August 2015 Software-
Defined Infrastructure Survey. Findings include the following:

▪ SDI is broadly recognized as an important option for datacenter infrastructure, especially

among firms that are well under way on their digital transformation journey.
▪ Among centralized IT, SDI is generally viewed as an evolutionary extension of virtualization
and integrated systems. Line-of-business IT and application developers often view SDI
differently and are open to considering SDI for a wide range of new and existing workloads,
including mission-critical tier 1 workloads, provided there are derived benefits.
▪ Benefits and selection criteria focus on improved control, productivity, cost savings, and agility.
The areas that are closely examined for tangible benefits include capex/opex spend, adoption
of public cloud and converged infrastructure, and IT staff productivity. The lack of in-house IT
skills and cost of migration are major concerns.
Implementing SDI requires many of the stated goals to be realized (to a varying degree of course) in
the core layers of the infrastructure stack: compute, networking, and storage. In fact, a majority of
organizations are looking at all three core aspects of the infrastructure.

Storage is particularly critical because it is the only layer that deals with data persistence. Data is not
just handled as a transient entity; it "lives" here. Higher development costs associated with custom
hardware design and the resulting impact on the time to market of the solution have pushed suppliers
to shift their development efforts toward software solutions that run on industry-standard (aka
commodity off-the-shelf [COTS]) hardware. A common manifestation of this hardware in the datacenter
is in the form of x86-based servers with standard computing, networking and, of course, storage
components. In fact, one could argue that in the software-defined era, hardware platform commonality
translates to the delivery of computing, networking, and storage services via industry-standard servers.
Data persistence is a must for any solution to be classified as "storage," software defined or otherwise.

©2018 IDC #US43507616 2

IDC finds a generally positive awareness and acceptance of SDS among enterprises of all sizes.
Buyers largely reckon that they can realize tangible benefits by adopting SDS in the datacenter:

▪ Buyers have accepted that SDS forms the core of a building block strategy for next-generation
IT infrastructure. SDS allows IT to "future proof" infrastructure — as next-generation
applications come online, and the infrastructure can seamlessly adapt to the new workloads
and enable to-the-cloud initiatives. As companies move strategically to hybrid cloud, data
persistence will become more important.
▪ Buyers are aware that SDS is an approach to deliver at-scale storage using industry-standard
hardware. For most buyers, SDS offers two entry points for infrastructure acquisition: a
traditional capex/opex mode for traditional (corporate) IT initiatives and an agile but flexible
pay-as-you-go acquisition mode for line-of-business or project-driven IT initiatives.
▪ SDS is not and cannot be a one-size-fits-all approach. The choice of file-, block-, and object-
based SDS is governed by workload dependency. To that effect, buyers look for vendors that
can provide a full spectrum of SDS solutions that offer feature parity between standalone
installations and as a part of cloud frameworks like OpenStack.
Figure 5 (refer to the Appendix section) illustrates that the top 3 reasons for adopting SDS are a
tangible reduction in:

▪ Opex (including human resources) costs

▪ Capex (including hardware acquisition) costs
▪ Provisioning times
Respondents also cited ease of management and vendor choice as one of the crucial reasons for
adopting SDS, noting both direct and indirect impact on ongoing operations.

Figure 6 (refer to the Appendix section) illustrates that not all forms of SDS are used in the same
manner. File-based SDS is more popular, primarily due to the growth and proliferation of unstructured
user and analytics data. However, object-based SDS is catching on as enterprises adopt next-
generation applications. Block and hyperconverged trail behind, thus suggesting that buyers are not
yet there when it comes to embracing SDS for structured data sets.

IBM Spectrum Storage: A Comprehensive SDS Portfolio for the Enterprise

In 2015, IBM launched the Spectrum family of software-defined storage products. This launch was key
for IBM Storage for the following reasons:

▪ It signaled a companywide shift from a legacy (hardware-defined) delivery model to a

software-defined delivery model for all things storage — primary storage, data protection, data
management, and next-generation storage technologies. Software-defined storage now
serves as the conduit through which IBM invests in future storage technologies.
▪ It unified all of the disparate software offerings under a single coherent product family called
the Spectrum Storage and provides a framework under which these products can be tightly
integrated. At the same time, it allows IBM to position each product for a specific use case,
synonymized by a specific product name like the Spectrum Accelerate.
▪ It reaffirmed IBM's commitment to storage and, in the short term, the fact that IBM still views
storage as a core and strategic focus area. IBM announced that it is planning to invest more
than a billion dollars over the next five years in this area, underscoring its commitment.

©2018 IDC #US43507616 3

The Spectrum Storage family signaled IBM's departure from building or acquiring new disparate
(hardware-defined) storage systems or standalone storage software products. Instead, IBM continues
to invest in a family of software-defined products with the following defining characteristics:

▪ Complementary in feature functionality to each other and capable of running as components of

an integrated solution but also autonomous and full featured to run as standalone products
▪ Software decoupled from underlying hardware and can run on COTS hardware (with internal
or externally attached persistence) on a virtual infrastructure or in the cloud
▪ Capable of managing IBM and non-IBM storage products like all-flash arrays and also IBM
and non-IBM public or private clouds
▪ Built using IP delivered previously as a hardware-only solution, ensuring compatibility with
existing installations but supports next-generation applications
Collectively, IBM's Spectrum Storage family offers the essential capabilities of storage, albeit in a
software-defined fashion. It is already a leader in the software-defined storage controller software
(SDS-CS) market. Table 1 illustrates the key products that form a part of the Spectrum Storage family.
Collectively, the Spectrum Storage family features:
▪ A mature set of file, block, object, and hyperconverged platforms that are built for the
enterprise and designed to support current and next-generation applications
▪ Spectrum Control for storage management, Spectrum Protect for data protection, and
Spectrum Archive for tape
▪ Aggressive road map to enable SDS on-premises with both private hosted cloud and public
cloud storage options

©2018 IDC #US43507616 4

TABLE 1

IBM's Spectrum Storage Product Family

Analytics-driven hybrid cloud data management

IBM Spectrum Control
to reduce costs by up to 73%

Optimized hybrid cloud data protection to reduce

IBM Spectrum Protect
backup costs by up to 53%

Fast data retention that reduces TCO

IBM Spectrum Archive
for active archive data by up to 90%

Virtualization of mixed block environments

IBM Spectrum Virtualize
stores up to five times more data

Enterprise block storage for hybrid cloud deployed

IBM Spectrum Accelerate
IBM Spectrum Scale
Source: IBM, 2018
in minutes instead of months
High-performance, highly scalable
hybrid cloud storage for unstructured data
driving cognitive applications

IBM is approaching storage as a use case, not a product-by-product solution. A key attribute of IBM's
Spectrum Storage family is coherency. Unlike SDS-based offerings from other leading storage
suppliers, IBM's SDS portfolio (aka Spectrum Storage) is not a container of randomly acquired and/or
organically developed products. It is a well-thought-out framework with solutions that solve a set of
storage-related challenges in a consistent manner.

FUTURE OUTLOOK

Software-defined principles are driving the design of next-generation storage systems, as can be seen
from investments being made by incumbent and upcoming vendors. Increasingly, users are looking to
software-defined platforms as the medium to store data in a cost-effective manner, especially as data
sets get bigger. Enterprises have the opportunity to reduce deployment and operational costs by
aggressively rolling out a software-defined infrastructure paradigm, including SDS. The benefits
provided by SDS matter to these new workloads or NGAs. New deployment options are crucial to
expanding the use of SDS for NGAs. Accordingly, the datacenters of tomorrow will continue to change
with the proliferation of SDS platforms that:

▪ Offer flexible delivery models: From the compute layer to disk storage mechanisms and from
local open object interfaces to cloud-based interfaces, buyers need to have a wide range of
options for data storage. Initially, users will move their nonmission–critical and nonbusiness–
critical workloads to such platforms, and eventually, they will move more workloads to such
platforms.

©2018 IDC #US43507616 5

 ▪ Deliver a service-based infrastructure: SDS platforms should allow businesses to provision
resources from a variety of locations, locally and remotely, but maintain a seamless
presentation layer regardless of the device or location from which they access those
resources.
Accordingly, IDC believes that vendors will increasingly rely on the following criteria for building their
SDS portfolio:

▪ Take a platform approach to deliver best-of-breed SDS solutions. Via acquisitions or

organically, build SDS solutions that support multiple file, block, and object data organization
schemes and access protocols. Vendors should resist the urge to bolt multiple access
protocols onto the same platform, making it a suboptimal solution in specific use cases.
▪ Take a holistic approach to deal with data management of large data sets. The platform should
support built-in location-awareness, geodispersal, life-cycle management, archiving, and data
protection capabilities, including the ability to securely store and tier the data into public cloud —
thereby creating a hybrid cloud data fabric. The platform should also intelligently automate the
movement of data to the appropriate tier and manage geodispersal of data in an economic fashion.
▪ Build an analytics-friendly platform. The platform should be friendly toward Hadoop and other
analytics-centric data management platforms. The platform — depending on the use case —
could support programmatic metadata access and the capability to unify structured and
unstructured data sets for analytics.

CHALLENGES/OPPORTUNITIES

IDC's Software-Defined Infrastructure Survey asked respondents their reasons for not deploying SDS
or for getting rid of an installation. These responses illustrate that vendors still have some ways to go
in convincing their buyers to embrace SDS platforms. IBM's integrated solutions on the same SDS
framework may alleviate some of these concerns. Vendors, like IBM, must do more to educate their
customers on the benefits of SDS platforms in the areas of:

▪ Cost savings: Regardless of the manner in which the SDS platform is procured, it can deliver
substantial and measurable cost savings — both from initial acquisition savings and from
operational efficiencies.
▪ Ease of management: SDS platforms get a bad rap for being cumbersome to manage. Some
of it is perception, and some of it may be a function of bad implementation practices. Vendors
have to make their products easy to implement and easy to manage. More importantly,
vendors have to function as advertised, which means ensuring that there are no ambiguities
with respect to the selection of the platform for the workloads to be hosted on it.
▪ Vendor support: Some buyers believe that SDS platforms do not work as advertised. These
same buyers also think that SDS platforms do not receive the same level of support when
issues do occur. Vendors should do their best to debunk these misperceptions and provide
adequate assurances to such skeptical buyers.
▪ Ecosystem and application support: Buyers often hesitate to embrace SDS when there is a
lack of ecosystem and joint vendor certification from the application vendor. An ecosystem and
joint vendor certification does a lot to ensure a consistent message across the board.

©2018 IDC #US43507616 6

CONCLUSION

SDS is here to stay. Both incumbent and up-and-coming storage suppliers are making a big push into
SDS. The value proposition of SDS platforms will become only more compelling as vendors focus on
this software-based delivery, away from custom hardware and flexible delivery models.

Buyers should continue to keep an open mind. By adopting newer software platform models that break
the traditional barriers between what are considered the compute, storage, and network components
of the infrastructure, they will be better positioned to support their business' digital transformation.

APPENDIX

Findings from IDC's Software-Defined Infrastructure Survey

Figures 1–6 show the findings from IDC's Software-Defined Infrastructure Survey, August 2015.

FIGURE 1

Expected Business Benefits from Software-Defined Infrastructure

Better scalability 34.0

Improved business agility 33.0
Better disaster recovery/business continuity 32.0
Faster service/application provisioning 31.3
Improved ability to react to changing business 29.7
Lower operating costs 29.0
Higher application availability 25.7
Better allocate IT staff to strategic/innovative projects 25.7
Greater resource utilization/sharing 23.7
Reduce number of vendors we work with 21.7

0 5 10 15 20 25 30 35
(% of respondents)

n = 300
Note: Up to three business selections were permitted per respondent.

Source: IDC's Software-Defined Infrastructure Survey, August 2015

©2018 IDC #US43507616 7

FIGURE 2

Expected IT Benefits from Software-Defined Infrastructure

Improve security management/control 47.3

Improve IT staff productivity 46.7

Allow IT staff wider range of responsibilities 34.7

Support hybrid cloud strategy 34.0

Support workload portability across platforms 32.3

Most consistently define/enforce compliance and
29.3
configuration standards
Reduce datacenter power/cooling costs 28.3

Improve end-user SLAs 25.7

0 10 20 30 40 50
(% of respondents)

n = 300
Note: Up to three IT selections were permitted per respondent.

Source: IDC's Software-Defined Infrastructure Survey, August 2015

©2018 IDC #US43507616 8

FIGURE 3

Software-Defined Infrastructure Selection Criteria

Ease of implementation 51.3

Total cost of operations savings 51.0
Improved staff productivity/reduce downtime 50.0
Support for our cloud strategy 48.3
Capital cost savings 45.7
Impact on new services and revenue 43.3
Speed of ordering/deployment and time to value 42.0
Certified support for specific workloads or applications 38.7
Ability to purchase the full solution from a single vendor 34.7
Vendor's existing presence in our datacenter 32.3
References from other customers 28.0

0 10 20 30 40 50 60
(% of respondents)

n = 300
Note: Multiple selections were permitted.

Source: IDC's Software-Defined Infrastructure Survey, August 2015

FIGURE 4

Risks and Challenges Related to Software-Defined Infrastructure

Lack of in-house IT skills and resources to support
47.7
adequately
Too expensive to migrate/replatform applications 40.7

Business decision-maker objections 38.7

Will slow down/distract us from moving to public cloud
37.0
infrastructure
Unproven technology 35.0

Unsure 2.7

0 10 20 30 40 50
(% of respondents)

n = 300
Note: Multiple selections were permitted.

Source: IDC's Software-Defined Infrastructure Survey, August 2015

©2018 IDC #US43507616 9

FIGURE 5

Benefits of Deploying Software-Defined Storage

Q. You mentioned that you have seen tangible benefits in your environment as a result of
deploying an SDS infrastructure? What benefits have you seen?

Ease of management,
Ease of management
41.9

Reduced provisioning
Reduced provisioning times
times, 46.8

No vendor lock-in No vendor lock-in, 27.4

Reduced capex costs
Reduced capex costs (including hardware
(including hardware acquisition costs) acquisition costs), 64.5

Reduced opex costs

Reduced opex costs (including human costs) (including human costs),
59.1
0 10 20 30 40 50 60 70
(% of respondents)
n = 186
Base = respondents who have seen/experienced tangible benefits from SDS deployment

Source: IDC's Software-Defined Infrastructure Survey, August 2015

FIGURE 6

Software-Defined Storage as a Percentage of Overall Storage Infrastructure

Q. Of this raw storage capacity, how much of it is in the following software-defined storage
platforms?

Block 24.2

File 31.5

Object 25.9

Hyperconverged 18.4

0 5 10 15 20 25 30 35
(% of respondents)

n = 302
Base = respondents who have currently deployed SDS platforms/systems

Source: IDC's Software-Defined Infrastructure Survey, August 2015

©2018 IDC #US43507616 10

About IDC
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